Producers of metals, grains and other raw materials fell as surprisingly strong U.S. jobs data caused a rate hike scare.
Gold futures tumbled, losing 3.1% to erase almost all their gains for 2026. Investors had piled into the precious metal as a bet that further rate cuts would erode the relative value of the U.S. dollar. Now, Fed funds futures market are pricing in near certainty of a rate hike by December.
"We now expect the Fed to reverse 2025's three 'insurance' rate cuts at sequential meetings, beginning in December," said economists at brokerage BNP Paribas, in a note to clients. "The aim is to reduce the level of monetary stimulus, contain inflation expectations and stabilize the unemployment rate at a low level, in our view."
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
06-05-26 1728ET
